1.  GENERAL INFORMATION:
 
 Ajanta Pharma Limited (the Company) is a public company domiciled
 in India and incorporated under the provisions of the Companies Act,
 1956. Its shares are listed on two stock exchanges in India. The
 Company is engaged in the business of pharmaceutical and related
 activities, including research.
 
 (a) Terms/Rights attached to equity shares
 
 The company has issued only one class of equity shares having a par
 value of Rs 10 per share. Each holder of equity shares is entitled to
 one vote per share. The company declares & pays dividend in indian
 rupees. The dividend proposed by the Board of Directors is subject to
 approval of the shareholders in the ensuing Annual General Meeting.
 During the year ended 31 March 2012 amount per share of dividend
 recognised as distributions to equity shareholders was '' 7.50 (Pr.Yr.
 Rs 5.00).
 
 In the event of liquidation of the company, the holders of equity
 shares will be entitled to receive remaining assets of the company,
 after distribution of all preferential amounts. The distribution will
 be in proportion to the numbers of equity shares held by shareholders.
 
 2.  Contingent Liabilities:
 
 Particulars                             31 March 2012     31 March 2011
                                            Rs in Lacs        Rs in Lacs
 
 i) Letter of Credit opened                   1,813.51          1,529.44
 
 ii) Guarantees given by the Bankers on
 behalf of the company                        2,018.31          1,900.25
 
 iii) Guarantee given to banks for loan 
 availed by Ajanta Pharma (Mauritius)           763.05               Nil 
 Ltd. , wholly owned subsidiary 
 [USD 15 Lakh (Pr.Yr. USD Nil)]
 
 iv) Income tax demands disputed by 
 Company pending in appeal.                     369.18            379.92 
 Amount paid under protest Rs 182.00 Lacs 
 (Pr.Yr. Rs 80.00Lacs).
 
 v) Sales tax demands disputed by Company 
 pending in appeal.                              21.67                 -
 
 vi) Custom Duty on import under Advance 
 License Scheme, pending                        132.62             58.39 
 fulfilment of Exports obligation.
 
 vii) Estimated amounts of contracts 
 remaining to be executed on capital          2,363.08          1,322.60 
 account and not provided for, 
 net of advances
 
 viii) Unpaid allotment money in 
 respect of
 
 (a) Common Stock of Ajanta Pharma Inc., 
 wholly owned subsidiary                         75.29             65.99 
 equivalent to USD 1.48 Lacs 
 (Pr.Yr. USD 1.48 Lacs).
 
 (b) Shares of Ajanta Pharma UK Ltd, 
 wholly owned subsidiary,                         8.15              7.17
 equivalent to UK Pound 0.10 Lacs 
 (Pr.Yr. UK Pound 0.10 Lacs).
 
 Future cash outflows in respect of liability under clause (iv) to (vi)
 is dependent on decisions by relevant authorities of respective
 disputes, in respect of clauses (i), (ii), (iii) & (vii) liability is
 dependent on terms agreed upon with the parties and in respect of
 clause (viii) it is dependent on call made by investee company.
 
 3.  The Board of Directors have recommended dividend of Rs 7.50 (Pr.Yr.
 Rs 5.00) per equity shares, which is subject to approval of
 shareholders.
 
 4.  Disclosure of trade payables under current liabilities is based on
 the information available with the Company regarding the status of the
 suppliers as defined under the Micro, Small and Medium Enterprises
 Development Act, 2006. Amount outstanding as on 31 March 2012 to
 Micro, Small and Medium Enterprises on account of principal amount
 aggregate to Rs 268.44 Lacs (Pr.Yr. Rs 117.42 Lacs) [including overdue
 amount of Rs 60.16 Lacs (Pr.Yr. Rs Nil)] and interest due thereon is Rs
 9.89 Lacs (Pr.Yr. Rs Nil) and interest paid during the year Rs Nil
 (Pr.Yr. Rs Nil). As per the terms/ understanding with the parties, no
 interest is payable and hence no provision has been made for the same.
 
 5.  The Company has one segment of activity namely Pharmaceuticals.
 
 6.  Employee Benefits
 
 As required by Accounting Standard-15 ‘Employee Benefits'' the
 disclosures are as under :
 
 6.1.  Defined Contribution Plans
 
 The Company offers its employees defined contribution plans in the form
 of Provident Fund (PF) and Employees'' Pension Scheme (EPS) with the
 government, and certain state plans such as Employees'' State Insurance
 (ESI). PF and EPS cover substantially all regular employees and the ESI
 covers certain workers. Contributions are made to the Government''s
 funds. While both the employees and the Company pay predetermined
 contributions into the Provident Fund and the ESI Scheme, contributions
 into the Pension fund is made only by the Company. The contributions
 are normally based on a certain proportion of the employee''s salary.
 During the year, the Company has recognised the following amounts in
 the Account:
 
 6.2.  Defined Benefit Plans
 
 Gratuity: The Company makes annual contributions to Employees'' Group
 Gratuity-cum Life Assurance (Cash Accumulation) Scheme of LIC, a funded
 defined benefit plan for qualifying employees. The scheme provides for
 payment to vested employees as under:
 
 6.2.1.  On normal retirement / early retirement / withdrawal /
 resignation:
 
 As per the provisions of Payments of Gratuity Act, 1972 with vesting
 period of 5 years of service.
 
 6.2.2.  On the death in service:
 
 As per the provisions of Payment of Gratuity Act, 1972 without any
 vesting period.
 
 6.3.  Leave Encashment:
 
 From the current year, employees are entitled for compensated absences
 which are allowed to be accumulated and encashed as per the Company''s
 rules and the same is being provided based on report of independent
 actuary using Projected Unit Credit Method.
 
 Accordingly Rs 223.80 Lacs (including towards current liability of Rs
 24.68 Lacs) being liability as at the year-end for compensated absences
 as per actuarial valuation has been provided in the accounts.
 
 7.  Employees Stock Options Scheme (''ESOS'')
 
 The Company has instituted an Employees Stock Options Scheme 2011
 (‘ESOS - 2011'') during the year which was approved by the
 shareholders vide their resolution dated 1 July 2011. The Board of
 Directors of the Company has granted 30,000 stock options to its
 employees pursuant to the ‘ESOS -2011'' on 24 October 2011. Each
 option entitles an employee to subscribe to one equity share of the
 Company at an exercise price of '' 10/- per share.  Details of the
 options granted during the year under ESOS-2011 are as under:
 
 The Compensation cost of stock options granted to employees is measured
 by the fair value method and is amortised uniformly over the vesting
 period.
 
 The key assumption used in Black-Scholes model for calculating fair
 value is: expected life of the option - between 1 to 3.2 years,
 volatility - 96%, risk free rate of return - 8.5% and dividend yield -
 1.73%.
 
 8.  Disclosure for operating leases under Accounting Standard 19-
 Leases:
 
 The Company has taken various residential /godowns / office premises
 (including furniture and fittings, therein as applicable) under
 operating lease or leave and licence agreements. These are generally
 cancellable and range between 11 months and 5 years under leave and
 licence, or longer for other leases and are renewable by mutual consent
 on mutually agreeable terms. The company has given refundable interest
 free security deposits in accordance with the agreed terms. The lease
 payments of Rs 344.65 Lacs (Pr.Yr. Rs 289.90 Lacs) are recognised in the
 Statement of Profit and Loss under Rent under Note 29.
 
 9.  Excise duty related to differences between closing and opening
 stock and other adjustments are stated under operating and other
 expenses. Excise duty related to turnover is reduced from the Gross
 Revenue from Operations.
 
 10.  In terms of the requirements of the Accounting standards-28 on
 Impairment of Assets issued by the Institute of Chartered
 Accountants of India, the amount recoverable against Fixed Assets has
 been estimated for the period by the management based on present value
 of estimated future cash flows expected to arise from the continuing
 use of such assets. The recoverable amount so assessed was found to be
 adequate to cover the carrying amount of the assets, therefore no
 provision for impairment in value thereof has been considered
 necessary, by the management.
 
 11.  As per the best estimate of the management, no provision is
 required to be made as per Accounting Standard (AS) 29 Provision,
 Contingent Liabilities and Contingent Assets as notified by the
 Companies (Accounting Standards) Rules 2006, in respect of any present
 obligation as a result of a past event that could lead to a probable
 outflow of resources which would be required to settle the obligation.
 
 12.  Note on hedge and unhedged foreign currency assets and
 liabilities:
 
 The Company has entered into forward exchange contract, being
 derivative instruments for hedge purpose and not intended for trading
 or speculation purposes, to establish the amount of currency in Indian
 Rupees required or available at the settlement date of certain payables
 and receivables. Forward Exchange Contracts to sell USD 10 Lacs (Pr.Yr.
 USD 45 Lacs) are outstanding as at the year end. The year end foreign
 currency exposures that have not been hedged by a derivative instrument
 or otherwise are as below:
 
 13.  The Company has not granted any loan/advances in the nature of
 loans, as stipulated in the clause 32 of the Listing Agreement with the
 Stock Exchanges. For this purpose, the loans to employees as per the
 Company''s policy, security deposits paid towards premises taken on
 leave and license basis have not been considered. Hence, there are no
 investments by loans in the shares of the Parent Company and/or
 subsidiary companies.
 
 14.  Consumption of consumable stores is wholly indigenous in the
 current and previous year.
 
 15.  Previous year''s figures are regrouped and recast wherever
 required.